- Trump may impose 25% tariffs against Mexico and Canada on Saturday
- He has not explicitly given that he will do so but has warned
- He also insists the U.S. can do without their goods
Donald Trump continues to implement his earlier statements, and now it’s no longer Colombia, but Canada and Mexico that are in the crosshairs.
He has warned that he may impose 25% tariffs this Saturday, although he has not explicitly stated whether or not a final decision has been made.
He insists that Canada and Mexico are not fair in trade with the U.S. and that he can quickly fix that, and the goods they supply are not critical, but has focused on oil.
More About Trump’s Plans for Canada and Mexico
Trump is showing a highly tolerant attitude towards cryptocurrencies but seems quite the opposite on global trade. He recalled his promise regarding trade tariffs on goods from Canada and Mexico, specifically the 25% tariffs he may impose this Saturday.
“We’ll be announcing the tariffs on Canada and Mexico for a number of reasons.”
And while he added that these tariffs are not forever and may be subject to change, he still talks about their possible application.
“I’ll be putting the tariff of 25 percent on Canada and Mexico, and we will really have to do that because we have very big deficits with those countries. Those tariffs may or may not rise with time.”
By this situation, he means that, in his opinion, the trade relationship between the US and Canada/Mexico is not working as well as it should, nor is it fair.
“Look, Mexico and Canada have never been good to us on trade. They’ve treated us very unfairly on trade, and we will be able to make that up very quickly because we don’t need the products that they have.”
While this is a very unambiguous statement, the U.S. still has a trade that is critical to the country, namely oil.
“We may or may not. We’re going to make that determination, probably tonight, on oil. Because they send us oil, we’ll see. It depends on what the price is. If the oil is properly priced, if they treat us properly, which they don’t.”
Although Donald Trump says the key issue is price, the oil produced in Canada is not the same composition as oil from the United States or Mexico. So just replacing it is not going to be that easy, because certain sectors of the economy and industry rely on it.
Conclusions
It is worth watching carefully whether Trump will impose these tariffs or not, because this is a very big step that could be a direct and even more indirect factor for fundamental changes in global trade.
Also, the reaction of Canada and Mexico may be unpredictable, and not at all similar to the Colombia scenario, which adds to the uncertainty of the situation.
Be aware and stay tuned.
The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
